What is it? Mortgage indexes such as Libor (London Interbank Offered Rate) and COFI (11th District Cost of Funds) represent the constantly fluctuating rates lenders pay to borrow money as economic conditions change. Adjustable-rate mortgages are tied to these indexes -- mortgage contracts usually set an adjustable rate at Libor or COFI, plus a certain number of percentage points called a margin.
Borrowers with ARMs -- especially those whose loans are approaching their reset date -- should keep an eye on these indexes to help plan for fluctuations in mortgage payments.
Find the latest mortgage index rates.